Chinese stocks slump as weak tech earnings hit sentiment

A selloff in Chinese stocks deepened on Friday afternoon, as disappointing tech earnings hit sentiment already weakened by concerns over Donald Trump’s imminent return.

The CSI 300 Index slumped 3.1%, the most since Oct. 11. The Hang Seng China Enterprises Index lost as much as 2.4%, set to cap a second straight week of losses. Tech and electric vehicle-related shares were among the biggest losers.

The retreat extends the market’s slide since an October peak, underscoring growing frustration over the Beijing’s underwhelming fiscal stimulus and jitters over a potential escalation in US-China tensions. The latest earnings from consumption bellwethers PDD Holdings Inc. and Baidu Inc. have done little to inject confidence, with the latter’s shares briefly plunging 10% in Hong Kong following a decline in revenue.

Chinese Stocks Drop Over 3% as Headwinds Mount
The investors “found nothing has improved from property and equity to consumption — also no positive surprise from corporate earnings,” said Steven Leung, an executive director at UOB Kay Hian Hong Kong.